Chapter 11 Summary and Analysis

In the early days of oil exploration in Saudi Arabia, natural gas is seen as a worthless by product of oil production. In the 1950s, natural gas is recognized as a useful product for maintaining reservoir pressure. It was not until the 1970s that Saudi Arabia officials realized the true economic potential of natural gas. In 1975, Saudi Aramco establishes the Master Gas System to begin using the natural gas by product to create a petrochemical/chemical industry - SABAIC - in Saudi Arabia. Within a decade, natural gas becomes the primary fuel for creating electricity for domestic use in Saudi Arabia. One of the most important uses is to power desalination plants that convert seawater to potable water for Saudi Arabians.

The great demand for natural gas leads Saudi Arabian officials to begin exploration for natural gas not associated with oil...